The floor of the New York Stock Exchange in New York on April 25, 2022 (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The New York Stock Exchange welcomed with relief the determination of the American central bank (Fed) to curb inflation by raising its key rates sharply on Wednesday.
According to final results, the Dow Jones index rose 1.00% to 30,668.53 points, the S&P 500 gained 1.46% to 3,789.99 points and the tech-heavy Nasdaq climbed 2 .50% to 11,099.15 points.
At the end of its monetary committee meeting, the Federal Reserve raised its key rates by 75 basis points, to set them within a range of between 1.50% and 1.75%. This is the strongest monetary tightening since 1994.
“The Fed underscored the seriousness of its mission with its first 75 basis point rate hike since 1994, moving quickly in anticipation of rising inflation,” said Chris Low, chief economist at FHN Financial. .
“This time, for the first time in years, the Fed is trying to reverse inflation which is already well above its target,” the analyst added.
For Peter Cardillo of Spartan Capital, “the Fed spoke strongly and the market liked that”. “While the bear market will continue for a while, it has responded favorably and bond yields have fallen after their sharp rise earlier in the week,” the analyst said.
Yields on ten-year US government bonds, which move opposite to their price, eased to 3.29% from 3.47% the day before, which was a high since 2011.
Inflation peaked at 8.6% year on year in the United States and Jerome Powell, the chairman of the Fed, assured that the Central Bank was “committed to bringing inflation back to around the 2% target”.
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© 2022 AFP
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